How Obamacare is winning “Young Invincibles”

More than 5.7 million young Americans have become insured since 2010.

When the Affordable Care Act (ACA) passed in 2010, one of the biggest unknowns was this: Would enough young, healthier Americans sign up for Obamacare to keep the fledgling health insurance marketplace viable?

“Young invincibles,” many believed, were critical for balancing out the older, sicker – and more expensive – enrollees who would otherwise dominate the market. Without enough younger participants, experts feared, the market would see a “death spiral” of rising premiums that could lead to its eventual collapse.

Experts moreover had cause to worry. In 2010, the uninsured rate among 19-to-25 year olds was 34.1 percent – more than double the uninsured rate among the population as a whole.

But since 2010, more than 5.7 million young Americans ages 19-to-25 have gained coverage, according to government figures, including significant numbers of African-Americans, Latinos and other minorities. And of the 8.84 million Americans who chose a plan during the most recent open enrollment period, 28 percent were millennials ages 18-to-34.

How is Obamacare winning millennials?

For one thing, many young Americans actually want coverage – “young invincibles” turns out to be a misnomer. A 2013 survey by Kaiser, for example, found that among adults ages 18-25, only 11 percent said they were “healthy enough that I don’t really need insurance.” Meanwhile, 65 percent said they were worried about “not being able to pay medical bills for a serious illness or accident,” and 44 percent worried about meeting bills for routine health care.

What was holding young Americans back from getting coverage was something else: Cost. Or rather, perceptions of cost.